"Their intention to direct substantial funds towards the expansion projects signals they wish to ramp up production within a short timeframe," he said in a statement.

"It is clear that they have developed an excellent understanding of Stonewall's long-term strategy to feed central processing plants from the vast number of available mines and ore bodies in the mining and prospecting areas."

Stonewall Resources shares gained 8.3 per cent, or one cent, to 13 cents following the acquisition announcement.